The City and County of Swansea Pension Fund has won the Best Climate Change Strategy award at the Local Authority Pension Fund (LAPF) Investments Awards for the great strides we are making towards delivering a net zero investment portfolio by 2037. Our team looks after the pensions of 48,000 members with a scheme worth £2.9bn and it was also shortlisted by LAPF for pension fund of the year and best investment strategy.
News
Wales pool response
As Chairs of the pension committees for the eight Welsh local government pension funds, we are delighted to submit this proposal comprising details of the establishment of the Wales Pool.
Within Wales, our work on identifying the opportunity for achieving efficiencies through the pooling of investments predates the announcement of the LGPS wide agenda last year. Prior to the publication of the guidance to the LGPS in November 2015, we had already developed and agreed a detailed business plan which included joint procurement of a single provider for passive management and establishment of a pooling vehicle for collective investment. We have recently implemented the appointment of a single passive manager and are benefiting as a result from significant cost savings effective from April 2016.
In the document below, we have confirmed our commitment to appoint a regulated third party operator to provide a series of collective vehicles in order to benefit from economies of scale from the management of Welsh pension fund assets. The arrangements will be provided through a robust governance structure providing clear accountability back to individual funds.
Discussions are continuing on the precise arrangements to be put in place for the different types of investments held by the funds but we are estimating that annual savings – net of all running costs – in the region of £10m p.a. could be achieved.
We are a cohesive group of funds with a long experience of collaborating across a number of policy areas, reflecting the specific economic, social, regulatory and political context within Wales. There is a strong desire within Wales to continue the direction of travel we have adopted to date and to capture fully the benefits which we outline in this proposal.
Cllr. Graham Hinchey, Chair, Investment Advisory Panel, Cardiff and Vale of Glamorgan Pension Fund
Cllr. Rob Stewart, Chair, Pension Fund Committee, City and County of Swansea Pension Fund
Cllr. Alan Diskin, Chair, Pension Fund Committee, Clwyd Pension Fund
Cllr. Wyn Evans, Chair, Pension Fund Panel, Dyfed Pension Fund
Cllr. Mary Barnett, Chair, Pensions Committee, Greater Gwent (Torfaen) Pension Fund
Cllr. Stephen Churchman, Chair, Pensions Committee, Gwynedd Pension Fund
Cllr. A G Thomas, Chair, Powys Pension Fund
Cllr. Mark Norris, Chair, Pension Fund Committee, Rhondda Cynon Taff Pension Fund
Annual Benefit Statements
The Annual Benefit Statements for Active scheme members, calculated to 31 March 2016, were dispatched at the end of August 2016.
If you do not receive yours by mid-September 2016, please contact the Pensions Section by sending an email to pensions@swansea.gov.uk. Alternatively you may view your statement online by accessing My Pension Online.
If you commenced membership of the scheme after 31 March 2016, you will receive your first Benefit Statement (calculated to 31 March 2017) during the 2017/2018 financial year.
State Pension is changing
The State Pension is changing to a simplified single tier flat rate pension on 6 April 2016, for those who will reach state pension age on or after that date. The single tier will replace the current tiered arrangement (Basic State Pension and Additional State Pension).
If you are an active member you may currently receive a National Insurance Contribution rebate of 1.4% of your pay, depending on what you earn, as you are “contracted out” of the Additional State Pension. From 6 April 2016 you will no longer receive the rebate as the “contracted out” status is ending; therefore you and your employer will pay the higher amount of National Insurance Contributions.
Please note that if you qualify for the new State Pension you may NOT receive the full amount. This is because you have paid lower National Insurance Contributions due to being “contracted out” of the Additional State Pension while you are membership of the Local Government Pension Scheme.
It should also be noted that the introduction of the new State Pension will NOT affect your LGPS benefits and that these benefits will continue to form an important part of your income in retirement.
Please click here to refer to the newsletter sent to LGPS members in December 2015 or the following website for further information:
https://www.gov.uk/new-state-pension/overview
Member Self Service – My Pension Online
Member Self Service – My Pension Online
Member Self Service – My Pension Online provides members of the City and County of Swansea Pension Fund with the opportunity to access their pension information at any time.
Active, deferred or pensioner members of the Scheme, can view and update basic details, access relevant forms and receive all publications immediately, including annual benefit statements, newsletters and factsheets.
The system holds data in real-time and means that scheme members can access the current data being used by the Pension Fund. Active members will be able to perform benefit calculations at their convenience, to actively plan for retirement.
To register for Member Self Service – My Pension Online, please click here and complete the ‘sign up’ details. Alternatively you can contact the City and County of Swansea Pension Fund on 01792 635566 or e-mail pensions@swansea.gov.uk.
Your activation key will then be sent to your home address and you will be required to log in to the ‘My Pension Online’ area via this page or the link provided on the letter.
LGPS Reform Update – Oct 2011
As you will be aware, the Department for Communities & Local Government (DCLG) have issued a consultation paper on proposed changes to the LGPS.
Please note that whilst changes to the LGPS are being proposed, nothing has been decided yet and the Scheme remains to be one of the best in the UK.